GIB Asset Management and CDP call for net zero 2030

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In a new article titled Net-Zero and the race to 2030, GIB AM and CDP said emissions reductions by 2030 are “urgently needed” to avoid depleting the global CO2 budget and increasing temperatures by more than 1.5 ° C.

Although companies have promised net zero, around 40% of companies with goals have yet to disclose how they plan to achieve them, leading to fears of greenwashing and confusion among stakeholders.

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The document recommends that companies that have not yet pledged net zero to commit to science goals, while companies that have set goals should ensure that they submit information, ideally through the CDP, to track. their progress. At the same time, organizations are also urged to publish credible transition plans that detail how they will align with climate science recommendations.

Greater data transparency will also help investors determine who is “best” at allocating capital and whether engagement strategies have been successful.

The document argued that “radical transformation” is needed in the electricity and energy sectors to achieve the required substantial emission reductions. For investors, this means seizing the opportunities presented by the challenges of sustainability, which can be facilitated by a low-carbon portfolio.

Katherine Garrett-Cox, CEO of GIB AM, said: “We are facing an unprecedented climate emergency and without urgent action there is a clear risk that a tipping point will be reached.

“As governments prepare the ground for COP26, they cannot accomplish the necessary transformation on their own. The race to zero is truly a race towards 2030 and it is vital that we massively step up actions to reduce real emissions over the next nine years. “

Financial issues challenge

GIB AM and CDP also urge the financial sector to address the disconnect in environmental performance between what is reported and actual impacts.

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Despite significant momentum in environmental data disclosure in 2020, financial emissions remain a challenge, with the climate impact of investments and loans from financial institutions averaging over 700 times greater than their direct impact, according to a CDP study. . Only 25% of institutions report the emissions associated with their portfolio, while 49% do not analyze the impact of their portfolio on the climate at all.

Paul Simpson, CEO of CDP, said: “It is vital that all companies commit to achieving science-based net zero goals and establish transition plans to achieve them. What happens over the next five years is likely to determine whether net zero by 2050 is achievable. “

“Transition plans should include accredited science goals and outline the steps companies will take to move to a 1.5 ° C aligned business model. This should include capital allocation plans and the governance put in place by the company to ensure delivery. “


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